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Should You Buy Dermira Inc (DERM)?

As one would reasonably expect, key hedge funds were leading the bulls’ herd. OrbiMed Advisors, led by Samuel Isaly, established the most valuable position in Dermira Inc (NASDAQ:DERM). According to regulatory filings, the fund had $14.4 million invested in the company at the end of the quarter. Paul Sinclair’s Blue Jay Capital Management also made a $9.3 million investment in the stock during the quarter. The other funds with brand new DERM positions are Barry Rosenstein’s JANA Partners, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, and Drew Cupps’s Cupps Capital Management.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Dermira Inc (NASDAQ:DERM) but similarly valued. We will take a look at CVR Energy, Inc. (NYSE:CVI), Western Refining Logistics LP(NYSE:WNRL), iRobot Corporation (NASDAQ:IRBT), and COMSCORE, Inc. (NASDAQ:SCOR). This group of stocks’ market values match DERM’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CVI 13 1012103 -3
WNRL 7 89609 2
IRBT 12 61856 -3
SCOR 14 234447 -9

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $350 million. That figure was $205 million in DERM’s case. COMSCORE, Inc. (NASDAQ:SCOR) is the most popular stock in this table. On the other hand Western Refining Logistics LP(NYSE:WNRL) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Dermira Inc (NASDAQ:DERM) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

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Disclosure: None

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